Adobe Systems (Nasdaq: ADBE ) is expected to report Q1 earnings on March 19. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Adobe Systems's revenues will contract -5.6% and EPS will shrink -45.6%.
The average estimate for revenue is $986.4 million. On the bottom line, the average EPS estimate is $0.31.
Last quarter, Adobe Systems recorded revenue of $1.15 billion. GAAP reported sales were 0.1% higher than the prior-year quarter's $1.15 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Last quarter, non-GAAP EPS came in at $0.61. GAAP EPS of $0.44 for Q4 were 26% higher than the prior-year quarter's $0.35 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the preceding quarter, gross margin was 89.2%, 70 basis points worse than the prior-year quarter. Operating margin was 26.7%, 290 basis points worse than the prior-year quarter. Net margin was 19.3%, 420 basis points better than the prior-year quarter.
The full year's average estimate for revenue is $4.10 billion. The average EPS estimate is $1.40.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,773 members out of 1,892 rating the stock outperform, and 119 members rating it underperform. Among 506 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 480 give Adobe Systems a green thumbs-up, and 26 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Adobe Systems is outperform, with an average price target of $34.42.
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